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If you are a teacher, former teacher, or have years of experience in childcare and are interested in entrepreneurship – you may want to consider opening your own daycare center from home or in a private facility. With employment expected to grow by 7% over the next decade, working in childcare is a sustainable career choice. So, if you’re wondering how to start a daycare center, you’ve come to the right place.
How To Start A Daycare Business
As with starting a business in any industry, your passion for the craft — or in this case, your students — isn’t enough to ensure your daycare business is financially or legally viable. You’ll need to put a lot of effort into figuring out how to start your day-to-day maintenance operation, pay particular attention to licensing requirements, and ensure that your facility and program meet your state’s health and safety codes.
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If you are good at raising, nurturing, supporting and generally correcting large groups of young children, the work required to start a daycare routine should not overwhelm you. Here’s what you need to know.
While each path to starting a business looks different for each business owner, there are a few steps that every aspiring daycare owner should consider on how to start a daycare business.
Before you start writing a business plan for your day care business, you need to decide what type of business you want to open. Find out whether you want to start a home day care business or a more commercial facility – your municipality may have different permits depending on which one you choose. You also need to decide which age groups to focus on.
In the future, you will need to make business decisions about how they will affect your taxation and day-to-day care. Do you have partners or are you self-employed? You will also consider whether or not there is a business entity that offers you certain protection. Making your day care center a limited liability company can be a good move because if something goes wrong, the business will be liable.
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You may also decide to purchase a daycare franchise opportunity. This option will greatly streamline the steps required to open your daily care.
Once you’ve narrowed down these details about your business, you can move on to the next step in starting your daycare business: writing a business plan.
This is a step you should take when starting any business, and it can be a bit of a chore, especially for those looking to jumpstart their business. When you start writing your business plan, start with one of the things you want to include.
How To Start A Daycare Business In 2022
Your plan should include an executive summary, a company overview, a market analysis that includes a needs assessment for a business like yours, a marketing and sales plan, and a financial plan along with financial projections. Don’t worry, you can always add to it as your business grows.
One thing to add, however, is market research. The last thing you want to do is go through all the steps of “how to start a day care business” only to find that one is out of the question or there are already many day care concerns in that area. This is a convenient job.
Your business plan should also include a budget. The costs associated with opening and running your day care center can never be accurately summed up, but sticking to a budget will give you some parameters to work with (and comfort).
Also, be aware that day care centers may claim certain tax deductions that can ease your annual financial burden.
What Is The Cost Of Opening A Daycare Center?
You’ll also want to include a marketing plan. If you’re serious about starting a daycare business, you’ve probably already been caring for children in your area for some time and have built up a network of local parents. It’s a valuable way to attract customers (aka word of mouth). However, even implementing a basic marketing plan can help establish and legitimize your business—if you end up having to implement a waiting list, that’s great too!
Your marketing efforts can be relatively simple and inexpensive. You can start by creating a Facebook page and contact website for your day care center, providing your contact information and a little information about your business. If possible, plan to include photos of your facilities and testimonials from happy customers.
If you’re a fan of social media, it wouldn’t hurt to set up an Instagram, LinkedIn, and/or Twitter account to keep your current and future clients updated on your work. Of course, make sure you get permission from parents or guardians before posting pictures of their children.
Analog marketing techniques would work well here as well. If possible, consider distributing flyers or brochures to nearby libraries, schools, places of worship, or other local gatherings.
Complete Guide To Starting And Growing A Home Based Childcare Center
You may not need a master’s degree in education to become a day care teacher, but each state requires some licensing and certification on how to get started in day care. Visit your state’s Department of Child Care Services (or equivalent) to find out the training, experience and credentials needed to legally work in a day care facility.
For example, in New York State, a day care facility manager must be one of the following:
You’ll find that there are some other questions that come up when you’re trying to figure out how to start a daycare business at home or in another facility. Your state may require CPR certification for you and one of your employees. Another point to remember is to prepare at least first aid for children. You and your employees may also be required to undergo a fingerprint background check before being cleared for work.
Even if your state doesn’t require you to get a license, consider doing so because your licensing course will cover all the boxes you need to check for daycare in your state, including health and safety regulations, food preparation, and required child-parent interactions.
How To Start A Daycare Business In 2022: Steps To Opening A Child Care
In some states, you must first demonstrate that your day care center meets health and safety requirements in order to obtain the proper licenses or registration to open your day care business.
So, whether you want to open a day care center in your own home or buy or rent a new property, you’ll need to make sure the facility meets zoning, fire, health and safety laws. When it comes to how to start a home daycare business, you may need to make changes to your home to meet your state’s daycare requirements, so include them in your budget.
Another requirement to get your license? Insurance. In some states, you will need to be licensed by the Department of Health and Human Services to operate your day care center, but you will first need liability insurance.
The exception is home-based day care centers, which do not need insurance to be licensed by DHHS. However, those opening home day care centers should seriously consider getting small business insurance. You’re always at risk of a lawsuit when you’re self-employed, but that risk increases when you’re caring for other people’s children – protect yourself as much as you can.
How To Start A Commercial Child Care Business — Cmp
There are several types of insurance coverage for daycare businesses—general liability insurance, workers’ compensation, property insurance, malpractice and violence insurance, and more—so consult with an insurance agent to determine which coverage is best for your business.
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When starting a day care business, get a business card and a business checking account to help keep your business expenses separate from your personal expenses.
Deducting your personal and business expenses is important for many reasons, not the least of which is to reduce your (or your accountant’s) burden during tax season. This is the smartest way to run your business. Set yourself up for success
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